Bonterra announces $4.0 million private placement

Bonterra Resources Inc. [BTR-TSXV, BONXF-OTC, 9BR1-FSE] has announced details of a $4 million private placement financing consisting of up to 16 million units priced at 25 cents each.

The company said each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to acquire one share at an exercise price of 31 cents for four years from the date of issuance. The offering is expected to close on May 2, 2023.

Proceeds are earmarked for working capital and general corporate purposes. The company also said it has reached an agreement to settle approximately $1.5 million in outstanding debt owed to an arms length creditor by issuing 6.0 million shares at 25 cents per share.

Bonterra shares were active on the news, easing 10.3% or $0.03 to 26 cents, Friday. The shares trade in a 52-week range of 37.5 cents and 16 cents.

Bonterra is a gold exploration and development company with a focus on the Urban Barry mining camp in Quebec, where the company has rights to more than 38,000 hectares.

The company has four main assets, Gladiator, Moroy, Barry and Bachelor that collectively have a total of 1.24 million ounces of gold in the measured and indicated categories and 1.78 million ounces in the inferred category. Bonterra owns the only permitted and operational gold mill in the region.

The company was in the news in November, 2023, when it announced details of an earn-in and joint venture agreement with Osisko Mining Inc. [OSK-TSX] covering key gold properties in Quebec’s Eeyou Istchee James Bay region.

Under the agreement, Osisko has the right to acquire up to a 70% interest in the Pheonix joint venture (previously known as the Urban Barry property) by spending $30 million, with a minimum spend of $10 million per year over a three-year period.

In a press release on April 15, 2024, Bonterra said 20,000 metres have been drilled on the project and exploration efforts are on track to exceed the minimum spending commitment of $10 million per year.

In the press release, Bonterra said the first drill results at the Moss target, located five kilometres southwest of the multi-million-ounce Windfall gold deposit, have confirmed similarities with the geological character of the high-grade Lynx Zone along the Mazeres Fault that extends towards the Moss target.

“Today’s results are very encouraging and demonstrate geological similarities to the Windfall gold deposit,’’ said Bonterra President and CEO Marc-Andre Pelletier. “Notably, most of the drill hole intercepts at Moss are within 400 metres below surface, with additional drilling planned to confirm mineralization continuity at depth.

Drilling highlights include 5.18 g/t gold over 3.3 metres, including 16.75 g/t over 1.0 metre and 3.19 g/t over 2.9 metres, including 12.70 g/t gold over 0.7 metres in hole OSK-PHX-24-04. Osisko is expected to add another drill rig, bringing the total number of operational drill rigs at Moss to six.